Location: Sacramento--Roseville--Arden-Arcade, CA | Metro: Sacramento--Roseville--Arden-Arcade, CA HUD Metro FMR Area
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,530 |
| 1 Bedroom | $1,570 |
| 2 Bedrooms | $1,930 |
| 3 Bedrooms | $2,530 |
| 4 Bedrooms | $2,920 |
| 5 Bedrooms | $3,387 |
| 6 Bedrooms | $3,793 |
| 7 Bedrooms | $4,096 |
| 8 Bedrooms | $4,301 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,570 | $297,426 | 0.53% | F |
| 2BR | $1,930 | $382,672 | 0.5% | F |
| 3BR | $2,530 | $535,748 | 0.47% | F |
| 4BR | $2,920 | $676,510 | 0.43% | F |
U.S. Census Bureau data (2024)
The HUD Fair Market Rent (FMR) for ZIP code 95713 in Colfax, CA, for fiscal year 2024 is set at $1970. This figure is significantly higher than the Zillow Observed Rental Index (ZORI), which stands at $1748 for the same area. This means that landlords participating in the Section 8 program can expect to cashflow positively at the FMR rate, as it exceeds the average market rent. However, the difference is marginal, indicating that landlords might need to ensure their properties are well-maintained and competitive to attract tenants willing to pay the higher voucher rate.
The median home value in the area is $506,018. Using this figure, we can calculate a rent-to-price ratio by dividing the ZORI by the median home value. This gives us a ratio of approximately 0.34%, suggesting that rental income in this area is relatively low compared to the cost of homeownership. This dynamic makes owning investment property potentially more attractive than buying a home for personal use, as the rental income alone does not justify the purchase price of a typical home in the area.
Regarding the days on market (DOM) and price cut percentages, both are listed as N/A and 0.2%, respectively. These figures indicate that the housing market in Colfax, CA, is quite stable, with few homes needing to be discounted to sell. This stability can benefit landlords who are looking for long-term investments, as it suggests a consistent demand for rental properties without significant fluctuations in property values.
In conclusion, the strongest investor angle in ZIP 95713 is cashflow, as the Section 8 voucher rates exceed the market rents, providing a positive cash flow opportunity for landlords with units that meet the necessary standards.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). Demographics from U.S. Census (2024).
About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.